Bitcoin
Key indicators and what else to look for by U.Today
U.Today’s recent price action has been whipsaw-like, characterized by a slight recovery after a dip over the past two weeks. According to Santiment, a market analytics platform, Bitcoin’s recovery was short-lived, but there are promising signs that a more substantial recovery could be on the horizon.
Key indicators
Santiment’s analysis points to a continued wave of negative sentiment among the crypto community. This growing impatience is a notable indicator, often signaling a potential market turnaround. The crypto Fear and Greed Index is currently in Fear, suggesting market pessimism.
When the crowd becomes extremely bearish, it can set the stage for a price recovery as it suggests that selling pressure may be close to exhaustion.
Another important indicator to watch is Bitcoin’s Relative Strength Index (RSI). Currently at a low of just 36, the RSI suggests that Bitcoin is approaching oversold territory.
The RSI is a momentum oscillator that measures the speed and change in price movements. An RSI below 30 is typically considered oversold, indicating a potential buying opportunity. While Bitcoin has not yet reached this threshold, its proximity could mean a recovery is near.
What else to look for
Along with the RSI, other technical indicators like Moving Averages (MA) can provide extra context for Bitcoin’s price. Bitcoin is currently trading below its daily 50 SMA at $66,341, and a strong move above this level could signal the start of a new uptrend.
In the short to medium term, it may also be essential to keep an eye on macro factors that impact broader market trends. Economic data, regulatory news, and global events can all influence the price of Bitcoin. At the time of writing, BTC is up 0.18% in the past 24 hours to $60,877.